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Lords debate on ECO4 and insulation schemes

Peers pressed the government on 29 January over suspended installers, who pays for repairs if firms fail, and how 65,000 households will be told about faulty solid wall insulation.

A newspaper on a kitchen table beside a model of grants and schemes

The House of Lords debated the Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme (GBIS) on 29 January 2025, following a Commons statement made on 23 January. Peers questioned the government on the number of suspended companies, remediation funding if installers become insolvent, and household notification1.

Around 65,000 households have had solid wall insulation installed under the two schemes, ECO4 having begun in April 2022 and GBIS in May 2023. TrustMark, described in the statement as the independent body that oversees tradespeople working in homes, carried out routine audits in October 2024 and found significant examples of solid wall insulation that did not meet the requisite standard. A fuller audit concluded in mid-December, and a total of 39 businesses have been suspended from installing new solid wall insulation in people's homes1.

The government said installers must fund any repair work themselves, that consumers should not be asked to pay a penny towards fixing problems, and that Ofgem has been instructed to oversee the work. Households with solid wall insulation fitted under the schemes will be sent a letter from Ofgem within three weeks, and a GOV.UK advice page is being set up1.

"Will the Government publish a full list of the 39 companies suspended from the scheme for carrying out poor-quality work?"
Baroness Bloomfield of Hinton Waldrist, Hansard, 29 January 20251

Peers also asked how suspended companies would be required to remedy their work, how remedied work would be checked against standards, and what action would ensure every affected household is properly informed. One peer raised the prospect of installers entering liquidation, asking who would then bear the cost of rectification. The government's answers to those questions are not recorded in the debate text1.

ItemFigure
Households with solid wall insulation under ECO4 and GBISAround 65,000
Installers suspended from new solid wall insulation39
Routine TrustMark auditsOctober 2024
Fuller audit concludedMid-December 2024

Why it matters for households

Solid wall insulation is one of the more intrusive measures fitted under ECO4 and GBIS, and faults range from missing paperwork to exposed insulation or poor ventilation, which the statement said could lead to damp and mould if not fixed. For a household, the practical questions are who inspects the work, who pays for any repair, and what happens to the property's condition and saleability in the meantime. The government has said consumers do not need to take action now and should not pay for remediation, with responsibility resting with the installers who carried out the work1.

The debate also touched on confidence in insulation and energy independence more broadly: a peer warned that repeated failures risk a loss of confidence in future retrofitting. The government said the issues appear specific to solid wall insulation under ECO4 and GBIS, and that it is reviewing quality under other schemes1. Faulty installs and remediation are covered in more detail in the site's guide to ECO4 and GBIS insulation failures.

What happens next

Ofgem will oversee quality checks on all solid wall insulation installed under either scheme, beginning with every measure being examined over the coming weeks by qualified professionals, including photographic evidence. Where a check raises issues, the certification body or TrustMark will arrange a property inspection and the problem will be fixed as soon as possible, with installers required to provide evidence that issues have been properly fixed. All affected households will receive a letter from Ofgem within three weeks, and a GOV.UK advice page is being set up. The government said it will report back to the House regularly and is reviewing solid wall insulation quality under other schemes1.

Sources1 cited
  1. ECO4 and Insulation Schemes - Hansard - UK Parliament, hansard.parliament.uk